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eOn Communications Corporation Announces Q1 FY 2001 Financial Results

Atlanta, Ga., November 29, 2000 - eOn Communications Corporation(TM) (Nasdaq:EONC), a leading provider of unified voice, e-mail and Internet communications systems, today announced financial results for its first fiscal quarter ended October 31, 2000.

The Company reported first quarter revenues of $12,338,000 compared to revenues of $14,343,000 for the first quarter of fiscal year 2000. Net loss for the quarter was $1,157,000 or $(0.09) per fully diluted share. This compares to net income of $335,000 or $0.04 per diluted share for the first quarter of the prior year. Revenues and loss for the fourth quarter of fiscal year 2000 were $10,772,000 and $1,390,000, or $(0.11) per fully diluted share, respectively.

"The 15 percent sequential quarterly growth during Q1 reflects increases in virtually all of our target markets," said David S. Lee, chairman and chief executive officer of eOn. Lee continued, "Although the seasonal buying patterns of many of our customers have historically resulted in lower second quarter revenues versus first quarter, this year we anticipate that sequential revenues will increase in our second quarter, albeit at a lower rate than in the first quarter.

"Through the first quarter and to date we have made significant progress on several marketing and operational initiatives, including the announcement of new technology partnerships and customer contracts, the addition of Value Added Resellers, the formation of new business units, and the announcement of a new product," Lee added. eOn previously announced an OEM agreement with Indyme Electronics, Inc., and marketing and technology agreements with IEX Corporation. In addition to these already announced partnerships, the Company has additional joint marketing and software licensing agreements with firms that are interested in eOn products. These strategic alliances are representative of the opportunities to leverage eOn's technology advantage in a broad range of markets.

The Company also announced the formation of a Millennium Strategic Business Unit and a new Professional Services Unit. This increased focus resulted in improved customer service and profitability from our Millennium product, and new service contracts from existing and new customers for our Linux-based products. During the quarter, eOn announced the signing of a major service contract with the Federal Aviation Administration that will be fulfilled by the Professional Services Unit.

In a separate press release today, eOn announced the introduction of remote agent software for its Web Center Software Suite that provides advanced e-mail queuing capabilities for remote call center agents. This new application is a significant addition to our Linux-based product line. eOn has frequently been recognized for product development, most recently with the TMC Labs Innovation Award.

The Company also confirmed the repurchase of 347,500 shares of eOn common stock as part of the stock repurchase program announced September 7, 2000. The Company will continue to repurchase shares as business conditions warrant.

"We continue to make progress on key initiatives and will continue to work in the areas of product development, business alliances, and the enhancement of our sales and marketing capabilities," Lee concluded.

Conference Call:

The Company will host a conference call at 4:45 p.m. EST today, November 29, 2000, to discuss first quarter results. To hear the call, go to www.eoncc.com and follow the directions on the home page or dial 913-981-5592 and give the operator confirmation code 411966. A replay will be available no later than noon on Thursday, November 30 and will remain available at least through December 5 via the investor information section of www.eoncc.com or by direct dial at 901-462-1010.

About eOn Communications Corporation

eOn Communications Corporation (www.eoncc.com) designs, develops and markets next-generation Linux-based communications servers and software that integrate and manage voice, e-mail and Internet communications for customer contact centers and general business applications. The Company also offers the Millennium® digital switching platform for small and medium-sized installations. eOn Communications Corporation helps enterprises communicate more effectively with customers, convert inquiries into sales, and increase customer satisfaction and loyalty.

Note:

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, including technical and competitive factors, which could cause the Company's results and the timing of certain events to differ materially from those discussed in the forward-looking statements. Such risks are detailed in eOn Communications Corporation's most recent Form 10-K filing with the Securities and Exchange Commission.

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